"tax relationship" taxable event taxable person
Here are the solutions to the questions presented in the images, based on the provisions of the Indian Income Tax Act, 1961.
Q. 2. Income Tax is charged on the Previous year Income. Do you agree? If not Give exceptions.
Agreement: Yes, I agree. The fundamental principle is that income earned in the Previous Year (P.Y.) is taxed in the next financial year, known as the Assessment Year (A.Y.).
Exceptions to the General Rule (P.Y. Income Taxed in P.Y.)
In certain specific cases, income is assessed and taxed in the same P.Y. Itself, primarily to ensure tax recovery:
* Non-Resident Shipping Business (Sec. 172): To tax freight income before the ship leaves India.
* Persons Leaving India (Sec. 174): Individuals leaving India with no intention of returning.... Continue reading ""tax relationship" taxable event taxable person" »
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